The National Payments Corporation of India (NPCI) has decided to temporarily waive the switching fee levied on all RuPay issuing and accepting banks for point-of-sale (PoS) and e-commerce transactions with effect from November 11, it said in a statement on Monday.
The waiver of the switching fee will last till December 31, which also happens to be the deadline for exchanging old notes of Rs 500 and Rs 1,000.
The switching fee is a fee levied on the card-issuing bank and the bank accepting the card through an online gateway or a PoS machine. The card issuing bank pays a fee of R0.60 per transaction, while the accepting bank pays a fee of Rs 0.30 per transaction.
“This demonstrates our commitment towards making electronic transactions cost effective for banks. The objective is to support banks in the activation of existing RuPay cards, issuance of new cards to un-carded customers and to widen the acceptance points.
“The government’s move on demonetisation of high denomination currency notes is the trigger point for pressing the fast forward button for digital payments,” A P Hota, managing director and chief executive officer at NPCI, said in the statement.